Mining Journal:

Oct 9, 2019

Coro to raise funds and acquire full control of Marimaca

Coro to raise funds and acquire full control of Marimaca

The company said it had struck a deal with local family owners to acquire the remaining 49% of the central Marimaca 1-23 claim, part of the Marimaca project, for US$12 million in cash, certain non-core mineral claims and a 1.5% NSR over the 1-23 claim.

It also announced a C$16.8 million (US$12.8 million) placement at a 28% premium, with the proceeds to make the first US$6 million payment and the balance to be used to advance a resource estimate, preliminary economic assessment, other land option payments and for general working capital.

Its two largest shareholders, Greenstone Resources and associated entities and Ndovu Capital XIV, were the two subscribers and had agreed to pay C11.5c per share, a 28% premium to the previous close, Coro said.

"This is one of the best endorsements we could hope for and I am grateful to our shareholders for the support we have received, and I look forward to returning that confidence as we work towards the publication of our new resource and PEA," CEO Luis Tondo said.

The company has expanded the project area and entered an option agreement to acquire a collection of royalties at Marimaca earlier this year.

Coro believes Marimaca has openpit potential, with recent drilling highlights including 46m at 1.25% copper from 24m.

It is now aiming to release an enlarged project resource next quarter.

Its shares hit a 52-week low of C4.5c in January and have risen 80% year-to-date.

They last traded at 9c to capitalise it at $131.3 million (US$99.9 million).

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